Adding md5 (or any other skeletal format) would add some posibilities, but it would not improve performance. Skeletal models are actually slower to proccess. They do have advantages that make them worth it, like animation blending and generally easier artirst usage, but performance is not one of them. The performance gain people is talking about comes given by LODs, and you don't need skeletal models to make LODs, all you need is to get the original model files or to re-create the models from scratch, which would have to be done for switching to skeletal models anyway.
Switching to skeletal models is not just a matter of adding the support for loading and drawing them, btw. All the player model animations system has to be rewritten, the skeletal animation blending has to be implemented, and all the models have to be redone from scratch.
I've done this in Warsow and I know it very well. And I do think skeletal models are worth the work, but people should know this is not just a simple format switch.